Provati Insurance financial analysis: combined ratio 91.4% and Tk 425m due from SBC (Oct 2026)

A fire-and-cargo insurer whose 2024 underwriting margin was the lowest of ten years, with Tk 424.6m due from the state reinsurer

What it is. Provati Insurance PLC (DSE: PROVATIINS; the name changed from Provati Insurance Company Limited with effect from 20-Nov-2025 [7]) is a Dhaka general insurer with 40,312,237 shares of Tk 10 [1 p.82]. In 2024 it wrote Tk 1,140.1m of gross premium: 45.9% marine (cargo and hull), 41.2% fire, 7.3% motor and 5.7% miscellaneous [1 p.118] [11]. It kept 75.7% of what it wrote after reinsurance [11]. At end-2024 directors and sponsors held 30.030% of the shares and the general public, including funds and institutions, 69.970% [1 p.73]. The company states it has one operating segment, in Bangladesh [1 p.102].

Where it stands. The latest annual report in our corpus is for 2024; the 2025 annual report is not in it. For 2025 we use the figures the company announced on DSE: EPS of Tk 1.73 against Tk 1.97, NAV per share of Tk 22.45 and operating cash flow per share of Tk 1.84 [7]. In 2024 profit after tax fell 10.4% to Tk 79.4m, the lowest since 2019 [2 p.42] [1 p.48] [11]. Underwriting profit fell to Tk 85.6m from Tk 127.6m [1 p.85], and the underwriting margin on net premium was 9.9%, the lowest of the ten years from 2015 [11]. Gross premium fell 5.3%, the only decline in those ten years [11]. In the first half of 2026 gross premium rose 34.3% to Tk 609.6m and profit after tax rose 43.3% to Tk 45.0m (EPS Tk 1.12 against Tk 0.78) [3 p.2] [11]. The shares closed at Tk 57.9 on 29-Oct-2026, up 90.5% from Tk 30.4 a year earlier [6] [11].

What drives shareholder returns. Provati earns from two sources. Underwriting is the larger: Tk 85.6m in 2024, almost all from marine cargo (Tk 126.5m) offset by losses in fire, motor, hull and miscellaneous [1 p.83]. Investment and other income is the second: Tk 43.6m in 2024, 43.3% of pre-tax profit, of which interest on FDRs, short-term deposits and treasury bonds was Tk 50.8m, offset by a Tk 12.1m fair-value loss on shares [1 p.83] [11]. Return on average equity was 9.2% in 2024, the lowest of 2016-2024 [11]. Capital allocation is plain: a reserve for exceptional losses is appropriated each year (Tk 36.7m in 2024) [1 p.84], there is no capital-expenditure commitment [1 p.125], and the dividend is in cash: 10% for 2024 'for the Shareholders excluding sponsor Shareholders' [1 p.125], and 12% for 2025 [7].

• Fire underwriting result. Signpost: the fire revenue account in the next annual report (losses of Tk 31.7m in 2023 and Tk 38.2m in 2024).
• Collection of the Sadharan Bima Corporation balance. Signpost: note 19 and the receivables-ageing note 47 in the next annual report (Tk 424.6m at end-2024, all shown 'Within 3 Months').
• Cash conversion. Signpost: operating cash flow per share in the Q3 2026 and FY2026 accounts (Tk 1.84 for 2025; negative Tk 0.40 for H1 2026).
• Premium growth after the 1-Jan-2026 commission change in the sector. Signpost: nine-month and full-year 2026 gross premium against H1 2026 growth of 34.3%.
• Dividend basis. Signpost: whether the FY2026 dividend declaration again excludes sponsor shareholders (it did for 2024 per note 45).

Fire and marine cargo make up 87% of premium; marine cargo supplies the underwriting profit

How it makes money. A Bangladeshi general insurer collects premium up front, cedes part of each risk to reinsurers (who pay back a commission), sets aside a reserve for the unexpired part of each policy, and pays claims, agency commission and management expenses from what is left. Provati sets its reserve for unexpired risk at 40% of the year's net premium for fire, marine cargo, motor and miscellaneous, and 100% for marine hull [1 p.86] [1 p.87] [1 p.88]. The five class revenue accounts sum to the underwriting profit; interest, dividends and other income less expenses not charged to any fund give the pre-tax profit [1 p.83].

Classes. Marine cargo is the largest line: Tk 518.2m of gross premium in 2024, down 11.0% from Tk 582.4m [1 p.118] [11]. Fire is second at Tk 469.5m, up 5.9% [1 p.118]. Motor was Tk 82.7m and miscellaneous Tk 65.0m; marine hull fell to Tk 4.7m from Tk 12.2m [1 p.118]. Public-sector business ('GOVT.' column) was Tk 101.0m of the 2024 gross premium, of which Tk 47.8m was miscellaneous [1 p.118]. Provati kept 81.7% of fire premium, 73.6% of marine cargo, 97.7% of motor, 26.3% of miscellaneous and 9.8% of hull [11].

Reinsurance. Provati ceded Tk 276.7m in 2024, 24.3% of gross premium, against Tk 313.5m (26.1%) in 2023 [2 p.42] [1 p.48] [11]. Commission on reinsurance ceded fell to Tk 47.5m from Tk 67.7m, 17.2% of premium ceded against 21.6% [1 p.85] [11]. Almost all of the balance due from 'other persons or bodies carrying on insurance business' is due from Sadharan Bima Corporation (SBC), the state-owned reinsurer: Tk 424.6m of Tk 426.2m at end-2024, against Tk 285.1m of Tk 286.7m a year earlier [1 p.112]. The amount due to other insurers was Tk 5.6m [1 p.109].

Ten years of premium. Gross premium rose from Tk 405.1m in 2015 to Tk 1,140.1m in 2024, a compound 12.2% a year (our derivation) [2 p.42] [1 p.48]. The step change came in 2019, when gross premium rose 59.0% to Tk 771.7m; the 2019 report's EPS note states that 'Earning Per Share (EPS) has been increased due to increase the gross premium income @ 58.96% compared to last year's gross premium income and increased in interest on FDR, STD and BGTB' [2 p.81] [2 p.42] [11]. Premium then grew in each year to a peak of Tk 1,203.3m in 2023 before the 2024 fall [11]. Retention ranged between 73.9% (2023) and 82.8% (2019) [11]. Net premium was Tk 863.4m in 2024, 3.0% lower than in 2023 [11].

Related parties. The 2024 related-party note lists fifteen entities, each with the relationship 'Common Director' and transaction 'Insurance Premium', totalling Tk 3,150,844, or 0.28% of 2024 gross premium [1 p.123] [11]. The largest amounts printed are Nabisco Biscuit & Bread Factory. Tk 873,651 and Next Food & Bevarage Ltd. Tk 834,900 (names as printed) [1 p.123]. The note states the transactions were 'in the normal course of business and on an arm's length basis' [1 p.122]. Key management compensation was Tk 18.7m across eight executives, including Tk 4.8m paid to the Managing Director & CEO, Md. Zahedul Islam [1 p.122].

Line items: claims rose to 38.7% of net premium in 2024 while commission income fell; fire lost money for two years

Claims. Net claims incurred (paid plus the change in outstanding claims) were Tk 334.0m in 2024 against Tk 313.6m in 2023, 38.7% and 35.2% of net premium [1 p.85] [11]. Claims paid were only Tk 249.8m; the rest is the rise in outstanding claims, from Tk 236.3m to Tk 320.6m [1 p.85]. By class, outstanding claims were Tk 145.5m in fire, Tk 147.9m in marine cargo and Tk 27.1m in motor at end-2024 [1 p.109]. Marine cargo outstanding claims rose by Tk 50.9m in the year and motor by Tk 21.9m [1 p.109]. The auditor made outstanding claims a key audit matter, stating that the provision 'has a direct impact on the profitability and liquidity of the Company' [1 p.77].

Fire. Fire net claims rose to Tk 202.0m from Tk 172.2m, 52.6% of fire net premium [1 p.86] [11]. Fire paid claims were Tk 190.3m against Tk 121.2m [1 p.86]. With Tk 70.4m of agency commission and Tk 149.7m of management expenses charged to it, the fire account showed a loss of Tk 38.2m after a loss of Tk 31.7m in 2023 [1 p.86]. Fire carried 45.18% of the apportioned management expenses, on 41.2% of gross premium [1 p.102] [11].

Marine cargo. The cargo account made a profit of Tk 126.5m in 2024 against Tk 155.9m in 2023 [1 p.87]. Its net claims fell to Tk 89.5m from Tk 113.2m, while net premium fell to Tk 381.4m from Tk 428.0m and reinsurance commission fell to Tk 27.1m from Tk 43.8m [1 p.87]. Motor went from a Tk 16.9m profit to a Tk 0.8m loss as motor net claims rose to Tk 41.9m from Tk 26.4m [1 p.89]. Miscellaneous (Tk 1.9m loss) and hull (Tk 0.1m loss) were small [1 p.88] [1 p.90].

Management expenses and commission. Management expenses charged to the revenue accounts were Tk 331.4m in 2024; the company prints this as 'approximately 29.07% of Gross Premium' [1 p.102]. Of this, Tk 319.2m was apportioned across the classes 'as per activity/Premium Income' and Tk 12.2m was charged directly [1 p.102] [1 p.117]. Agency commission was Tk 171.0m, 15.0% of gross premium, all on direct business [1 p.117] [11]. Together the two came to 44.1% of gross premium [11]. Expenses not charged to any fund, including Tk 22.2m of depreciation, appear in the profit and loss account [1 p.83]. The expense ratio on net premium, after reinsurance commission, was 52.7% against 51.0% [11].

Combined ratio. On our definition, (net claims + management expenses + agency commission - reinsurance commission) / net premium, the combined ratio was 91.4% in 2024 and 86.2% in 2023 [11]. The five-year table shows underwriting margins (underwriting profit / net premium) between 11.2% and 17.2% from 2015 to 2023 and 9.9% in 2024 [11]. Each 1 percentage point of combined ratio equalled about Tk 8.6m of underwriting profit on 2024 net premium (our arithmetic) [11].

Tax. Current tax is provided at 37.5%, 'the tax rate applicable for the publicly traded Insurance Company' [1 p.102]. The reserve for exceptional losses (Tk 36.7m) is deducted before the tax base, and dividend, capital gain and treasury-bond interest are taxed at their own rates [1 p.118]. Tax including deferred tax was 21.2% of pre-tax profit in 2024 and between 15.2% and 31.4% in 2015-2024 [11].

Investment income: FDR interest rose 68.7% in 2024 while a share portfolio lost Tk 12.1m in fair value

Interest. Interest on FDRs rose to Tk 43.5m in 2024 from Tk 25.8m, up 68.7%, while year-end FDRs fell to Tk 556.4m from Tk 616.5m [1 p.117] [1 p.82]. On the average FDR balance, 2024 interest was 7.4% (our arithmetic) [11]. Treasury bonds of Tk 105.0m at cost, kept with National Credit & Commerce Bank under the Insurance Act's deposit rule, earned Tk 7.0m [1 p.111] [1 p.117]. The FDR schedule has 50 bank and finance-company lines, two of them nil at end-2024; the largest balances at end-2024 were Jamuna Bank Tk 64.7m, AB Bank Tk 63.0m and Islami Bank Bangladesh Tk 34.3m [1 p.115].

Shares. The share portfolio was Tk 61.9m at market value at end-2024 against an acquisition cost of Tk 75.9m [1 p.111]. Tk 51.7m of it is unlisted at cost: HAC Securities Tk 46.8m, GMG Airlines Ltd. Tk 2.5m and Energy Prima Ltd. Tk 2.4m [1 p.111]. The listed part (eleven companies, cost Tk 24.2m) had a market value of Tk 10.2m [1 p.111]. The 2024 fair-value adjustment of Tk 12.1m went through the profit and loss account [1 p.112] [1 p.83]. The auditor made the share investment a key audit matter, noting that 'large unreported fall in the value of any holding may wipe out the value of the portfolio' [1 p.77].

Ten years. Investment and other income was between Tk 25.0m and Tk 45.8m in every year from 2015 to 2024 except 2021, when it was Tk 108.3m [2 p.42] [1 p.48]. It supplied 61.5% of pre-tax profit in 2021, 20.1% in 2022 and 43.3% in 2024 [11]. In 2021 pre-tax profit was Tk 176.1m and profit after tax Tk 149.3m, both the highest of the ten years [2 p.42] [1 p.48]. The five-year table does not break the 2021 figure down.

Ratios: ROE 9.2% in 2024, the lowest of 2016-2024; equity half of assets; cash conversion at a ten-year low

Growth and margins. Gross premium rose in every year from 2016 to 2023 and fell in 2024 [11]. Profit after tax grew from Tk 51.1m (2015) to a peak of Tk 149.3m (2021), then fell in each of 2022, 2023 and 2024 to Tk 79.4m [2 p.42] [1 p.48] [11]. The underwriting margin moved between 11.2% and 17.2% from 2015 to 2023 and was 9.9% in 2024 [11].

Returns. Return on average equity was 21.3% in 2021 and between 9.2% and 15.5% in the other years from 2016 to 2024; 2024 was the lowest [11]. Using the DSE-announced 2025 EPS of Tk 1.73 on 40.3m shares, 2025 profit after tax was about Tk 69.7m (our derivation, as the 2025 accounts are not in our corpus), and on end-2024 and end-2025 equity the 2025 return on average equity was about 7.8% (derived) [7] [3 p.1] [11]. Return on average assets was 4.5% in 2024 [11].

Leverage and capital. Equity was 48.8% of total assets at end-2024 and between 49.0% and 55.9% in the other years from 2016 to 2023 [11]. Net premium was 0.99 times equity in 2024, against 0.73-0.78 times in 2015-2018 and 1.05-1.20 times in 2019-2023 [11]. Paid-up capital grew from Tk 264.4m (2015) to Tk 403.1m (2022) through bonus issues; it has not changed since 2022 [2 p.42] [1 p.48]. The annual reports in our corpus do not print a solvency margin, so we do not show one.

Cash conversion. Operating cash flow per share exceeded EPS in 2018-2021 and was below it in the other six years; in 2024 it was Tk 0.13 against EPS of Tk 1.97, 0.07 times, the lowest of the ten years [2 p.42] [1 p.48] [11]. Net operating cash flow was Tk 5.2m in 2024 [1 p.92]. The cash-flow note shows the Tk 139.5m increase in the amount due from other insurers deducted from receipts [1 p.120]. The company's own explanation is that 'NOCFPS has been decreased due to deccrease in Net Cash provided by Operating Activities' [1 p.120]. For 2025 the DSE announcement gives Tk 1.84 against EPS of Tk 1.73 [7]; for H1 2026 it gives negative Tk 0.40 [7].

2025 EPS Tk 1.73 on DSE; H1 2026 premium up 34.3% and profit up 43.3%

2025 (DSE announcement). On 29-Apr-2026 the company announced 2025 EPS of Tk 1.73 against Tk 1.97, NAV per share of Tk 22.45 against Tk 21.71 and operating cash flow per share of Tk 1.84 against Tk 0.13, and recommended a 12% cash dividend [7]. EPS was 12.2% lower [11]. The quarterly announcements give Tk 0.38, Tk 0.40 and Tk 0.22 for the first three quarters, which leaves Tk 0.73 for the fourth quarter (our derivation) [7] [11]. The third-quarter figure compares with Tk 0.56 (restated) a year earlier [7]. The 2025 balance sheet is shown as the comparative in the 2026 interim accounts: equity Tk 904.9m, outstanding claims Tk 402.9m and bank overdraft Tk 33.1m [3 p.1].

H1 2026. Gross premium rose 34.3% to Tk 609.6m and reinsurance premium rose 81.4%, so retention fell to 64.0% from 73.4% [3 p.2] [11]. Reinsurance and profit commission tripled to Tk 46.5m [3 p.2]. The profit before investment and other income nearly doubled to Tk 36.8m, investment and other income rose 7.3% to Tk 22.9m, and profit after tax rose 43.3% to Tk 45.0m [3 p.2] [11]. The interim statement combines claims, commission and management expenses in one line, so the claims ratio cannot be read from it [3 p.2]. The line is printed 'Allocable management Expenses (Including Claim )' [3 p.2].

Sector change on commission. The Business Standard reported on 24-Dec-2025 that IDRA, the insurance regulator, scrapped the scope for paying commission in non-life insurance and suspended individual agent licences from 1-Jan-2026 under a circular of 23-Dec-2025 [8]. The H1 2026 interim statement does not show agency commission as a separate line [3 p.2].

Balance sheet at June 2026. Fixed deposits were Tk 485.5m and other cash and bank balances Tk 186.2m; the line for amounts due from other insurers was Tk 560.1m against Tk 507.2m at end-2025 [3 p.1]. Outstanding claims were Tk 426.2m, the overdraft Tk 32.9m and equity Tk 949.9m (NAV per share Tk 23.56) [3 p.1]. H1 2026 operating cash flow per share was negative Tk 0.40 against positive Tk 0.24 [7].

Q3 2026. As of 1-Nov-2026 the DSE archive shows no board-meeting notice and no results for the quarter to 30-Sep-2026 [7]. In 2025 the Q3 board met on 28-Oct-2025 [7], so the Q3 2026 accounts are later than that precedent; no board-meeting notice had been posted by 1-Nov-2026 [7].

Against City and Peoples in 2024: the highest claims ratio and combined ratio of the three, and the highest retention

We compare Provati with two Dhaka general insurers using each company's own 2024 annual report and one combined-ratio definition. We read each auditor's opinion first. Provati's auditor (A. Hoque & Co.) states that the financial statements 'present fairly, in all material respects' [1 p.75]. City's auditor (Islam Quazi Shafique & Co.) uses the same words [4 p.440], as does Peoples' auditor (ARTISAN) [5 p.260]. None of the three opinion pages carries an emphasis of matter.

Definitions and labels. Combined ratio = (net claims + management expenses + agency commission - reinsurance commission including profit commission) / net premium. Provati prints 'Management Expenses' Tk 331.4m and 'Commission on reinsurance ceded' Tk 47.5m, with no separate stamp line [1 p.85]. City prints 'Management expenses' Tk 239.7m and 'Insurance stamp expenses' Tk 5.6m separately, and 'Commission earned/accepted on re-insurance ceded' Tk 59.0m plus 'Profit commission' Tk 24.5m; we add the stamps and both commissions [4 p.448]. Peoples prints 'Expenses of Management' Tk 259.5m and 'Commission on re-insurance ceded & Profit Commission' Tk 69.4m [5 p.268]. Net claims are each company's 'claims under policies less re-insurance' [1 p.85] [4 p.448] [5 p.268].

What the table shows. Of the three, Provati wrote the most premium (Tk 1,140.1m) and kept the largest share (75.7% against 63.7% at City and 62.8% at Peoples) [11]. Its claims ratio was the highest of the three at 38.7%, against 6.5% at City and 17.4% at Peoples, and its combined ratio was the highest at 91.4%, against 60.7% and 76.8% [11]. Its expense ratio was the lowest of the three, 52.7% against 54.2% and 59.5% [11]. Management expenses plus agency commission were 44.1% of gross premium, between City's 43.6% and Peoples' 46.2% [11]. City's underwriting profit was Tk 164.8m and Peoples' Tk 88.2m, against Provati's Tk 85.6m [4 p.448] [5 p.268] [1 p.85].

Multiples as facts. On the 29-Oct-2026 close of Tk 57.9, Provati traded at 33.5 times the DSE-announced 2025 EPS of Tk 1.73, at 28.0 times trailing EPS to June 2026 (derived) and at 2.46 times June-2026 NAV per share [6] [11]. The 2025 cash dividend of Tk 1.20 was 2.1% of that price [11]. The company's own annual report printed a price-earnings ratio of 18.94 times for 2024 and 26.79 times for 2023 [1 p.83]. These are facts only, with no conclusion drawn about the price.

Balance sheet: Tk 700m of deposits and cash, Tk 424.6m due from SBC, an overdraft, and an unmodified audit opinion

Deposits and cash. At end-2024 Provati held Tk 556.4m of FDRs, Tk 144.1m of cash and bank balances and Tk 105.0m of treasury bonds [1 p.82]. The cash line includes Tk 53.7m in 'B.O. Account All' and Tk 31.3m 'Cash in Transit' [1 p.113]. FDRs fell to Tk 477.0m at end-2025 and were Tk 485.5m in June 2026 [3 p.1].

Overdraft. The balance sheet carried a bank overdraft of Tk 75.3m at end-2024: Tk 43.0m with AB Bank and Tk 32.3m with Jamuna Bank, all 'SOD' accounts; the Bank Asia and Eastern Bank lines of end-2023 were nil [1 p.110]. Note 44 describes these as 'bank secured overdraft available in the ordinary course of business' [1 p.125]. The overdraft was Tk 33.1m at end-2025 and Tk 32.9m in June 2026 [3 p.1]. The cash-flow statement shows a Tk 46.8m repayment of 'Short Term Loan' in 2024 [1 p.92].

Receivables. The amount due from SBC rose to Tk 424.6m at end-2024 from Tk 285.1m [1 p.112], 48.5% of equity [11]. The receivables note ages the whole SBC balance 'Within 3 Months' and Tk 1.6m 'More than 12 Months' [1 p.126], and states 'There were no such debts which considered to be doubtul' [1 p.126]. The company's NAV note says 'Increase in NAV per Share has been arised due to increase in the sundry debtors and due from other persons or bodies' [1 p.119]. Sundry debtors include Tk 82.0m of advance income tax, a Tk 21.3m 'Advance to BDDL against Floor Purchase' and a Tk 17.8m 'Advance to Reliance General & Renal Hospital Ltd.' [1 p.112]. The provision for income tax was Tk 85.3m [1 p.110].

Form AA tie. The Classified Summary of Assets ('Form AA') totals Tk 1,794.2m, the same as the balance sheet [1 p.93] [1 p.82]. Its 'Fixed Deposit Receipt and STD Accounts with Banks' (Tk 630.4m) and 'Cash in Hand and Current Account Including BO Account' (Tk 70.0m) add to Tk 700.4m, equal to FDRs (Tk 556.4m) plus cash and bank balances (Tk 144.1m) on the balance sheet [1 p.93] [11]. The other lines (bonds Tk 105.0m, shares Tk 61.9m at 'Market Value', accrued interest Tk 16.9m, and other assets Tk 909.99m, printed 909,999,453) tie to the balance sheet items [11].

Contingencies and commitments. Note 42 states 'The company is not any contingently liable as on 31st December, 2024' and note 40 that there was no commitment for capital expenditure [1 p.125]. Fixed assets rose to Tk 331.5m from Tk 232.2m after Tk 122.3m of additions; the separate 'Floor Purchase' line of Tk 115.0m at end-2023 was nil at end-2024 [1 p.116] [1 p.82].

Audit. A. Hoque & Co. (Md. Shahid Ullah, FCA) signed the 2024 report on 30-Apr-2025 [1 p.80]. The opinion reads: 'In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the company as at 31st December, 2024 and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs), the Companies Act, 1994, the Insurance Act, 2010, the Insurance Rules 1958, the Bangladesh Securities and Exchange Rules, 1987 and other applicable laws and regulations.' [1 p.75]. There is no emphasis-of-matter paragraph between the basis for opinion and the key audit matters [1 p.75]. The key audit matters are premium income, outstanding claims, investment in shares and the deferred tax liability [1 p.76] [1 p.77] [1 p.78]. The 2025 auditor's report is not in our corpus.

Directors and sponsors own 30.0%; ten directors each near 2%-6%; cash dividends, the 2024 one excluding sponsors

Ownership. At end-2024 directors and sponsors held 12,105,619 shares, 30.030%; the general public including funds and institutions held 69.970% [1 p.73]. The two largest holdings on the board were Pradip Kumar Das (5.814%) and the vice chairman Maroof Sattar Ali (5.467%); the other eight non-independent directors each held 2.001%-2.338% [1 p.73]. The five independent directors held no shares [1 p.73]. The report states there is no shareholder with 10% or more of the votes [1 p.74].

Board. The 2024 corporate-governance table and the directors' fee table name Al-Haj Mohammed Mofizur Rahman as chairman [1 p.73] [1 p.123], while the board-attendance note in the financial statements lists Md. Momin Ali as chairman [1 p.125]; the report does not reconcile the two. The board met five times in 2024 [1 p.125]. The managing director and CEO is Md. Zahedul Islam [1 p.122].

Director share notices (DSE). Director Md. Momin Ali declared on 15-Sep-2025 an intention to buy 140,000 shares and reported completion on 5-Oct-2025 [7]. On 4-Jun-2026 the company reported that director Shahadat Hussain had died on 5-Nov-2024 and that his 806,626 shares would pass in equal parts to his two daughters, both general shareholders; completion was reported on 25-Aug-2026 [7]. On 3-Mar-2025 it reported the transmission of 1,107 shares of the late sponsor Md. Ruhul Amin, FCA, of which 242 to independent director Kishower Amin, FCA [7].

Dividends. For 2024 the board recommended a 10% cash dividend; the DSE notice gives '10% Cash Dividend' [7], while note 45 of the accounts says it was for 'the Shareholders excluding sponsor Shareholders' [1 p.125]. On a 30.030% sponsor holding, that is about Tk 28.2m of cash, 35.5% of 2024 profit after tax (our derivation) [11]. For 2025 the board recommended 12% cash (Tk 1.20 a share), 69.4% of the Tk 1.73 EPS on a per-share basis [7] [11]; the DSE notice does not say whether sponsors were excluded. Dividends paid in cash were Tk 50.4m in 2024 and Tk 48.4m in 2023 [1 p.92].

Credit rating. ARGUS Credit Rating Services rated the company's claim-paying ability 'AAA' long term and 'ST-2' short term with a stable outlook on 11-Sep-2025 and again on 14-Sep-2026 [7]. The 2024 annual report lists 'AAA' long term for 2022-2024 and 'AA+' for 2020-2021 [1 p.48].

24 months of DSE news. The DSE archive from 1-Nov-2024 to 1-Nov-2026 holds results, dividend, record-date, spot-market, board-meeting, credit-rating, name-change, director-share and query-response notices [7]. On 8-Jul-2026, answering a DSE query about an 'unusual price hike and increase in volume', the company said there was 'no undisclosed price sensitive information' [7]. The archive contains no notice of a board approval for a capital project, expansion, rights issue or acquisition [7].

What moves the lines next: dated events from DSE precedent and the LDC decision

These are dated events after 31-Oct-2026 and the lines they bear on. We do not forecast numbers. Dates marked '(inferred)' come from the precedent board-meeting and announcement dates in the DSE archive; no date has been notified for them [7]. The Q3 2026 accounts were not announced by 1-Nov-2026, later than the 28-Oct-2025 precedent, and we do not infer a date for them.

Fire and claims. The fire account lost Tk 38.2m in 2024 with Tk 145.5m of fire claims outstanding at year-end [1 p.86] [1 p.109]. Total outstanding claims were Tk 426.2m in June 2026 [3 p.1]. The FY2026 class revenue accounts are where the fire result and the settlement of these claims are reported.

Commission. The 1-Jan-2026 change reported by The Business Standard applies to the whole non-life sector [8]. The FY2026 accounts are the first full-year accounts after that date. In 2024 Provati's agency commission was Tk 171.0m, 15.0% of gross premium [1 p.117] [11].

LDC graduation. The UN General Assembly adopted a decision on 29-Oct-2026 in New York (30-Oct in Dhaka) moving Bangladesh's graduation from least-developed-country status from 24-Nov-2026 to 24-Nov-2029, as reported by The Daily Star and The Business Standard [9] [10]. Provati's 2024 annual report does not quantify any effect on its lines.

Interest. In 2024 FDR interest was 7.4% of the average FDR balance (our arithmetic) [11]. Each 1 percentage point of yield on the 2024 average FDR balance of Tk 586.4m equalled about Tk 5.9m of interest income in 2024 (our arithmetic) [11].

Risks: fire losses, the SBC receivable, cash conversion, a shares portfolio at a loss, and missing filings

Fire is the line with the largest loss: Tk 38.2m in 2024 after Tk 31.7m in 2023, on 41.2% of gross premium [1 p.86] [11]. Marine cargo produced Tk 126.5m of underwriting profit in 2024 [1 p.87], and the whole company's underwriting profit was Tk 85.6m [1 p.85]. The SBC balance was 48.5% of equity at end-2024, and the due-from-insurers line was 59.0% of equity in June 2026 [11]. In 2024 operating cash flow was Tk 5.2m against profit after tax of Tk 79.4m [1 p.92] [1 p.48]. Share investments were carried Tk 14.0m below cost at end-2024 [1 p.112].

• Q3 2026 accounts (no board date notified by 1-Nov-2026): nine-month premium, NAV and operating cash flow per share.
• FY2026 annual report (board inferred late April 2027): fire revenue account, SBC receivable and ageing, outstanding claims, dividend basis.
• Overdraft and FDR balances in each interim statement.
• ARGUS rating renewal (inferred September 2027).

Ten-year history

Figures for 2015-2019 are from the 2019 annual report's five-year highlights, read from the page image, and for 2020-2024 from the 2024 report's management discussion [2 p.42] [1 p.48]. The 2024 report prints 2021 reinsurance premium as '24,43,79,960', which is Tk 244.4m and ties to gross less net premium [1 p.48]. EPS, NOCFPS and NAV per share are as reported each year and not restated for later bonus shares [2 p.42] [1 p.48]. On our daily data the shares closed between Tk 24.1 (13-Nov-2025) and Tk 67.8 (2-Jul-2026) in the year to 29-Oct-2026, and the market value at the 29-Oct-2026 close was about Tk 2.33bn [6] [11].

FAQ

Why did Provati Insurance's profit fall in 2024?

Underwriting profit fell from Tk 127.6m to Tk 85.6m. Net claims rose to Tk 334.0m from Tk 313.6m, reinsurance commission fell to Tk 47.5m from Tk 67.7m, and the fire account lost Tk 38.2m. Interest income rose to Tk 50.8m, but a Tk 12.1m fair-value loss on shares went through profit. Profit after tax fell 10.4% to Tk 79.4m. The company's own EPS note cites lower net premium, lower dividend income and higher dividend payment.

What is Provati Insurance's combined ratio?

91.4% in 2024 and 86.2% in 2023, on net claims plus management expenses plus agency commission less reinsurance commission, over net premium. On the same definition City Insurance was 60.7% and Peoples Insurance 76.8% in 2024.

How much does Sadharan Bima Corporation owe Provati Insurance?

Tk 424.6m at end-2024, up from Tk 285.1m, 48.5% of equity. The company ages it all 'Within 3 Months'. The total due from other insurers was Tk 560.1m in the June 2026 interim balance sheet.

What dividend did Provati Insurance pay?

10% cash for 2024, which note 45 says was for shareholders excluding sponsor shareholders, and 12% cash (Tk 1.20 a share) for 2025, with record date 10-Jun-2026 and AGM 10-Aug-2026. The company reported disbursing the 2025 dividend on 13-Sep-2026.

What did Provati Insurance earn in 2025 and the first half of 2026?

The company announced 2025 EPS of Tk 1.73 against Tk 1.97 and NAV per share of Tk 22.45. In H1 2026 gross premium rose 34.3% to Tk 609.6m and profit after tax rose 43.3% to Tk 45.0m, EPS Tk 1.12 against Tk 0.78.

Is Provati Insurance's audit opinion clean?

The 2024 opinion by A. Hoque & Co. is unmodified ('present fairly, in all material respects') with no emphasis of matter. Key audit matters were premium income, outstanding claims, investment in shares and deferred tax. The 2025 auditor's report is not in our corpus.

Sources

1. Provati Insurance Company Limited Annual Report 2024 (corpus PROVATIINS_ANNUAL_2024; PDF page numbers, printed page = PDF page - 2) · link · accessed 2026-11-01
2. Provati Insurance Company Limited Annual Report 2019 (five-year highlights 2015-2019, p.42) · link · accessed 2026-11-01
3. Provati Insurance PLC un-audited financial statements to 30-Jun-2026 (statement of financial position p.1 with 31-Dec-2025 comparatives; comprehensive income p.2) · link · accessed 2026-11-01
4. City Insurance PLC Annual Report 2024 (peer; auditor's report p.440, profit and loss p.446, consolidated revenue account p.448) · link · accessed 2026-11-01
5. Peoples Insurance Company Ltd. Annual Report 2024 (peer; auditor's report p.260, consolidated revenue account p.268) · link · accessed 2026-11-01
6. AnalystBro market data: DSE daily bars for PROVATIINS to 29-Oct-2026 · link · accessed 2026-11-01
7. DSE news archive for PROVATIINS, 1-Nov-2024 to 1-Nov-2026 (old_news.php, criteria=3): results, dividend, AGM, record date, ARGUS rating, name change, director share notices, board-meeting notices · link · accessed 2026-11-01
8. The Business Standard, 'IDRA scraps commission payments in non-life insurance sector', 24 Dec 2025 · link · accessed 2026-11-01
9. The Daily Star, 'Bangladesh gets 3 more years for LDC graduation', 30 Oct 2026 · link · accessed 2026-11-01
10. The Business Standard, 'Bangladesh gets 3 more years for LDC graduation', 30 Oct 2026 · link · accessed 2026-11-01
11. AnalystBro history and ratio model for PROVATIINS (model.xlsx, the workbook below) · link · accessed 2026-11-01